Right now, U.S. employers are expected to have added 135,000 jobs last month, up from June, according to Briefing.com.

"I think if the number comes in at or above expectations it will be a positive for the stock market in the near term and provide some stability," said Richard Cripps, chief market strategist for broker Stifel Nicolaus.

In other corporate news, financial data processor Fiserv (up $0.31 to $49.50, Charts, Fortune 500) said it will acquire the electronic payment processing company Checkfree (up $8.57 to $45.40, Charts) for $4.4 billion in cash, soothing recent concerns that dealmaking will dry up on Wall Street in the wake of recent troubles in the credit market. Checkfree shares soared 23 percent on the news.

Market breadth was positive. Winners beat losers by nearly 2 to 1 on volume of 1.97 billion on the New York Stock Exchange. Advancers topped decliners 4 to 3 on volume of 2.49 billion on the Nasdaq.

Oil prices remained near record highs reached earlier this week as U.S. light crude for September delivery rose 40 cents to $76.93 a barrel on the New York Mercantile Exchange.